The Mining Play

Medinah Minerals (MDMN)- 2017 Q4 General Discussion


#722

If you’ve reread the PR, you would come across the phrases “as soon as practical” and “as soon as possible”. Obviously the company(ies) do not have a transaction date yet. They are working on it. There are still some hurdles that need to be crossed (legal/regulatory). When the transaction details are finalized they will notify shareholders…they are obligated too.


#723

Nobody can say ‘when’ yet. more patience will be required. Also, just to ground everyone in reality - the conversion rate of .558 is not guaranteed. in theory it could be a tad higher OR LOWER. it is an estimate. AurynCDCH will have to figure things out legally and regulatorally (not a real word). MDMN will have to unwind its debts after AurynCDCH distributes the CDCH stock according to ownership. THEN, after all that, THEN we can likely get a date for conversion.

Please be prepared to sit tight for 2018.

Merry Christmas, Happy Holidays and here’s to a brighter new year ahead for this investment.

Drifter OUT


#724

I wish someone would take out the seller at .0035


#725

Look on the bright side. If you live long enough the mania stage should hit the precious metals, at some point. A rising tide floats all boats, even if they are a POS. And on another note…the glitter is off bitcoin this week :wink:


#726

I have been watching he’s been setting there for a few days, I think he started out with 4,500,000 at the ask. I couldn’t bring myself to buy at .0035 for whatever reasons, I took out .0034 at the ask.


#727

So when the conversion is complete, is the next step a reverse split being considered? I recall that this was mentioned several months ago on this board. Just trying to look forward.


#728

Yes. That is what I consider Part 2 of the transaction. There is no way CDCH is going to want to maintain 7 billion OS especially if they wish to move to a higher exchange. The increase in shares was just to simplify the pro rata share ownership among the entities.


#729

Can you or someone educate me on a reverse split?


#730

IThey raised the AS and OS to 7 billion handle the acquisition of ADL and the pro rata share exchange. Once that is complete, CDCH will reduce the OS to a reasonable level via reverse split. Shareholders share count will be reduced by an equivalent ratio and the share price will be reset to an inverse ratio of the split so that there is no change to the market value of the shares.

For example, let’s say CDCH closes at .015 with 7 billion shares. That puts the market value of the company at $105 million. You own 1 million shares. The market value of your shares is $15,000. CDCH enacts a 10:1 reverse split. That means that for every 10 shares you own, they will be consolidated to 1 share. CDCH’s total outstanding shares will be reduced to 700,000,000. Your million shares will be reduced to 100,000. CDCH will be repriced by a factor of 10 (inverse ratio of the split), so it will be trading at $0.15 the next day. The value if your holdings have not changed, only the share price and number of shares.


#731

Be trading at .15 cents the next day


#732

I hope they are going to wait to generate revenues before doing this, because we will go down like a brick if we don’t have anything that shows we have value.


#733

I know I’d mess up the math somewhere. Thanks for the correction


#734

It doesn’t matter one way or the other. If they make positive announcements about ADL, the share price should go up whether it’s pre or post split. If they make negative announcements it will go down whether it’s pre or post split.

I’m just glad we’re finally moving to a point where whatever value is speculated to be in the ADL will be reflected directly in the share price without layers of ownership to muddy the waters. That’s why I’m invested here.


#735

Don’t get me wrong Hurricane Rick, I am also very happy.


#737

Thank You, Hurricane Rick!


#738

For the first time in over 3 years I was a buyer today at .0033 in various blocks. I just left the bid up all day and every couple of hours a block would get bought. It appeared like it was the .0035 seller who came down to buy because that block would decrease by the same amount that was purchased in my block. I could see the .0035 seller unloading for EOY tax purposes. If that is the case, anyone wanting to take or add to their position can probably afford to be patient and let him come to you. Just a hunch based on what I was seeing.

My rationale for buying today is primarily to take advantage of the arbitrage between MDMN’s price and CDCH. If I buy 1 million shares of MDMN at .0033, that creates a $3,300 cost basis. Based on the projected .588 share conversion, the million shares of MDMN would convert to 588,000 shares of CDCH. With CDCH currently selling at .015, those converted shares carry a hypothecated value of $8,820. Obviously there is some inherent risk involved and even with the potential to hold those shares for a year, that is just too much of a disparity for me to pass up.

The break even point would be if CDCH traded down to .0056. With the Chilean Spring and drill season approaching, the greatest risks and legal entanglements behind the company, and Auryn moving into consolidating into a single legitimate company, I think the MDMN price point presented a rather favorable risk/reward value for a long term shareholder.


#739

Merry Christmas everyone


#740

I hope all the members here have a very safe and Merry Christmas New and prosperous New Year. CHEERS!!!


#741

Hi HR,

I want to thank you for sharing your insight over the years on all things Medinah. I too have been availing myself of some of the arbitrage opportunities based on the 0.558 ratio. What I think is about to blow people away is the transition in going from the past communication darkness from being in “cone of silence” mode (which I very much appreciate the past necessity of) to FULL DISCLOSURE mode now that the going public news via Cerro has been made public and the ratio released.

Within about 5 minutes of AMC going public all of a sudden we learned about the upcoming “massive” exploration program about to be unleashed, two separate JVs involving specialists in the types of deposits they will be working on, a potential new “exchange” listing or moving to the OTCQB or OTCQX plus the overall goal of building a major mining company. That’s not bad for the first 5 minutes of being public.

What I’m particularly looking forward to is information being released that relates to making some proper valuation estimates that heretofore have been absent. For instance, if a major mining company signs a JV agreement on the Pegaso Nero to do, let’s say, $30 million worth of exploration/development work for a one-fourth stake in the PN project then we can ROUGHLY estimate that Medinah’s 24% of the PN is worth in the neighborhood of $30 million. In the mining industry, it often takes a TRANSACTION to provide the information needed for a valuation estimation.

You can take it one step further and perhaps estimate that the PN probably represents about 40% of the value of the entire ADL mining district (total guess). This would VERY ROUGHLY suggest that Medinah’s 24% stake in the entire ADL mining district might approach $75 million in value. You might take this logic one step further and picture the major miner paying $30 million for one-fourth of the PN looking over at Medinah’s share structure and noticing that one-fourth of the ENTIRE ADL MINING DISTRICT (not just the PN) is being valued at only $10 million or $20 million or $30 million. Markets notice these things but we’ve been kept so far in the dark that I doubt many of us have noticed these relationships and how a little bit of DISCLOSURE can go a long way towards assessing proper valuation metrics.

With some preliminary cash flow projections out of the Caren Mine or later out of the Fortuna Mine we’ll have the ability to sharpen the pencils and apply some standardized valuation metrics based on NPV and discounted cash flow analyses. Hopefully, there has been a lot of information being stockpiled during the dark days. Thanks once again for all of your contributions.


#742

Merry Xmas to everyone :relaxed: